TLDR
- Osunkoya faces four years in jail for running crypto ATMs without regulatory consent, setting a precedent in the UK legal system.
- This sentencing is the UK's groundbreaking legal response to activities in the crypto sector that lack proper registration.
- Operating boldly in 28 locations, Osunkoya handled a staggering £2.6 million, equivalent to $3.14 million, over a few months.
- After authorities caught wind of his activities, he persistently ran operations using a fictitious identity.
- The FCA has since launched a significant campaign to shutter crypto ATMs, dramatically reducing their number from 80 to zero in the UK.
Making UK legal history, Olumide Osunkoya's four-year sentence is the first for unregistered crypto operations, marking a new era of regulatory oversight.
The Financial Conduct Authority (FCA) revealed that Osunkoya facilitated crypto transactions across a network of ATMs under GidiPlus Ltd. announced the sentence on February 28 Between December 2021 and March 2022, these machines processed close to £2.6 million, or about $3.14 million, without the necessary legal clearance.
Osunkoya, 46, didn't halt illegal activities after initial detection and even took over the operations from GidiPlus, running a dozen machines under falsified details.
He continued to defy regulations by operating under assumed names in a calculated effort to stay under the radar.
Regulatory Tensions and Continued Avoidance
On September 10, Osunkoya faced decisive action from the FCA, which charged him for his unauthorized crypto ATM operations.
Caught in the act via his company GidiPlus Ltd, Osunkoya is now serving a four-year sentence for incorporating illegal crypto dealings worth over £2.5 million.
The FCA put forth its charges, tracing how Osunkoya manipulated operations without adhering to legal protocols, making him a pivotal figure in crypto regulation.
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On September 30, Osunkoya admitted to five charges, becoming the pioneer UK resident charged for running unlawful crypto ATMs. February 28, 2025
The legal judgment extended beyond just ATM-related offenses, addressing forgery as well for creating fake financial documents.
Orchestrating scams with fabricated bank statements, he managed to pass off wealth scrutiny at crypto exchanges to sustain his schemes.
He further indulged in forgery by forming a company under an alias and had criminal property worth £19,540, roughly $24,567, from his operations.
Presiding in London's Southwark Crown Court, Judge Gregory Perrins underscored the seriousness of Osunkoya’s actions during sentencing.
Judge Perrins pointedly remarked, “Your continued illegal operations were intentional, flouting the regulator's authority,” highlighting the calculated nature of the activities.
Prompted by such cases, the FCA embarked on a comprehensive enforcement campaign in 2023, dismantling illegal crypto ATMs nationwide.
Engaging in widespread enforcement, the FCA's operation saw visits to 38 sites, resulting in the dismantling of 30 illegal machines.
Such enforcement has reshaped the landscape, with notable drops in crypto ATM areas shown by Coin ATM Radar data.
Therese Chambers, a lead FCA enforcement and market oversight figure, commented on the case's significance and its implications for future regulatory measures. the UK fell from 80 in 2022 to zero this year.
Warning that those defying the law will face harsh penalties, the FCA reiterated its cautionary stance on crypto investments.
The FCA's warning is stark: engaging with crypto remains high-risk, potentially leading to complete financial loss.
Increasing vigilance by regulators underscores the UK's commitment to enforcing crypto compliance and rooting out those operating on the fringe.
Maisie is a seasoned journalist specializing in Crypto & Financial news, contributing to noted publications and helming Blockfresh.com.
